Slide 1: Second Quarter Earnings Review
™ Second Quarter Earnings Review August 1, 2024
Slide 2: Disclosures
Disclosures Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our goals, plans and projections with respect to our operations, financial posi
Slide 3: Q2 Consolidated Highlights
Q2 Consolidated Highlights $1,076.5 million $33.9 million $0.61 Consolidated Revenue Net Income GAAP Diluted EPS +9.9% y/y +$79.5 million y/y +$1.44 y/y 7.2% $124.5 million $1.04 Lease Charge-Off Rate1 Adjusted EBITDA2 Non-GAAP Diluted EPS2 -20 bps sequentially -4.6% y/y -$0.07 y/y • Acima GMV3 grow
Slide 4: Q2 Business Segment Highlights
Q2 Business Segment Highlights Acima Rent-A-Center • GMV increased over 20% y/y in Q2, following nearly 20% GMV • Second consecutive quarter of y/y revenue growth growth in each of the two preceding quarters • Q2 2024 +1.9% y/y vs. +0.2% y/y in Q1 2024 • Q2 2024 +21.0% y/y, improved from +19.9% y/y
Slide 5: 2024 Strategic Priorities
2024 Strategic Priorities Optimize Digital Customer Operational Synergies Grow Market Share Improve business efficiency through Expand our retail partnerships and Experience Deliver digital solutions that improve optimization of processes, talent, direct to consumer solutions and technology across a
Slide 6: Q2 2024 Consolidated Financial Highlights
Q2 2024 Consolidated Financial Highlights Q2 2024 Financial Results Q2 2024 $’s millions Actual % of Total Revenue • Revenue: $1,076.5 million, +9.9% y/y Acima $552.8 51.4% Rent-A-Center $474.9 44.1% • Operating profit: $80.7 million, -$3.3 million y/y Mexico $20.9 1.9% • Net earnings: $33.9 million
Slide 7: Acima Q2 Highlights
Acima Q2 Highlights Acima GMV Trend ($M) Financial Results • GMV increased 21.0% y/y and improved sequentially from 19.9% in Q1 2024, led by y/y growth in application volume resulting from expanding retail partner network and existing partner penetration • GMV increased approximately 15% on a two-ye
Slide 8: Rent-A-Center Q2 Highlights
Rent-A-Center Q2 Highlights Financial Results Rent-A-Center Portfolio3,4 ($M) and Same Store Sales Trends • Revenue of $474.9 million, +1.9% y/y driven primarily by a 2.1% y/y increase in rentals and fees revenue, in addition to a 1.6% y/y increase in merchandise sales • Same store sales increased 2
Slide 9: Full Year 2024 Guidance
Full Year 2024 Guidance Raises Midpoint of Full Year 2024 Targets for Revenue, Adjusted EBITDA2, and Non-GAAP Diluted EPS2 Revised Full Year 2024 Guidance Initial Full Year 2024 Guidance (8/1/2024) (2/22/2024)4 Consolidated Guidance1 Revenues ($B) $4.10 - $4.30 $4.00 - $4.20 Adj. EBITDA Excluding SB
Slide 10: Capital Allocation & Financial Position
Capital Allocation & Financial Position Capital Allocation Balance Sheet & Liquidity • Distributed quarterly dividend of $0.37 per share, or $1.48 annualized ($’s millions) As of 06/30/24 • Focused on reaching long-term target leverage ratio of Liquidity $493.2 1.5x from a combination of Adjusted EB
Slide 11: Key Takeaways
Key Takeaways DRAFT Strong Q2 results Risk management & disciplined underwriting • Y/Y revenue growth at both Acima and RAC • RAC lease charge-offs (LCO) improved 30 bps y/y • Three consecutive quarters of 19%+ GMV growth at Acima • Acima losses within expected ranges, flat sequentially, with improv
Slide 12: Appendix
upb ound Appendix
Slide 13: Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted EPS
Reconciliation of Net Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended June 30, 2024 Earnings Diluted Operating Before Earnings per (In thousands) Gross Profit Profit Income Tax Tax Expense Net Earnings Share GAAP Results $ 531,959 $ 80,655
Slide 14: Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted EPS
Reconciliation of Net (Loss) Earnings to Net Earnings Excluding Special Items and Non-GAAP Diluted Earnings Per Share Three Months Ended June 30, 2023 Earnings Diluted (Loss) Operating Before Income Net (Loss) Earnings per (In thousands) Gross Profit Profit Tax Tax Expense Earnings Share GAAP Result
Slide 15: Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended June 30, 2024 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 69,991 $ 67,033 $ 1,559 $ 4,529 $ (109,163) $ 33,949 Plus: Interest expense, net
Slide 16: Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment)
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (Consolidated and by Segment) Three Months Ended June 30, 2023 (in thousands) Acima Rent-A-Center Mexico Franchising Corporate Consolidated Net earnings (loss) $ 63,109 $ 78,914 $ 1,298 $ 4,979 $ (193,918) $ (45,618) Plus: Interest expense, ne
Slide 17: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2024 2023 2024 2023 Net cash provided by operating activities $ 15,040 $ 36,543 $ 60,461 $ 141,960 Purchase of property assets (14,427) (11,860) (26,244)
Slide 18: Supplemental Segment Performance Details – GAAP
Supplemental Segment Performance Details – GAAP Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchise Corporate Consolidated (in millions) Acima Center Mexico Franchise Corporate Consolidated Revenue Revenue Rentals and fees $ 4
Slide 19: Supplemental Segment Performance Details – Including Non-GAAP Adjustments
Supplemental Segment Performance Details – Including Non-GAAP Adjustments Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Rent-A- Rent-A- (in millions) Acima Center Mexico Franchise Corporate Consolidated (in millions) Acima Center Mexico Franchise Corporate Consolidated Revenue Re
Slide 20: Reconciliation of Consolidated Total Leverage Ratio
Reconciliation of Consolidated Total Leverage Ratio Q2 Q1 (in millions) 2024 2024 Total Debt $ 1,335.7 $ 1,311.9 Less: Cash (unrestricted) 72.6 74.9 Net Debt 1,263.1 1,237.0 Adjusted EBITDA(1) Q2 2023 130.6 Q3 2023 106.0 106.0 Q4 2023 107.6 107.6 Q1 2024 109.1 109.1 Q2 2024 124.5 TTM Adjusted EBITDA